Sunway-REIT upbeat about remainder of FY25

PETALING JAYA: Sunway Real Estate Investment Trust (Sunway-REIT) is optimistic about its growth prospects for the remainder of its financial year ending Dec 31, 2025 (FY25) and beyond, supported by Malaysia’s steady economic recovery and improving consumer and business sentiment.

Sunway-REIT Management Sdn Bhd acting chief executive officer and chief financial officer Ng Bee Lien said the retail and hotel segments are expected to continue performing well, supported by the year-end school holidays, festive spending, and sustained demand for leisure and meetings, incentives, conferences, and exhibitions or MICE activities.

She added that the industrial segment is expected to see growth with committed tenancies, while the office segment is likely to remain “stable”, backed by tenant engagements and asset management efforts.

“Moving forward, Sunway-REIT will continue to pursue strategic asset acquisitions and value-enhancing initiatives to strengthen its diversified portfolio,” she said in a statement.

“We will also remain focused on sustainability and operational efficiency, in line with our long-term commitment to deliver resilient returns and sustainable value creation for unitholders.”

For the third quarter ended Sept 30, 2025 (3Q25), Sunway-REIT’s revenue rose 23.1% to RM236.43mil from RM192.14mil in the previous corresponding quarter, driven by improved performance across its retail, hotel and industrial assets while the office and services segments remained stable.

Net profit for the quarter under review climbed 43.2% to RM127.68mil from RM89.14mil a year earlier, as net property income (NPI) increased 25.3% to RM180.9mil from RM144.3mil.

“The strong performance was driven by the full quarter contribution from assets acquired in 2024 and new income from Aeon Mall Seri Manjung,” Sunway-REIT highlighted.

This came despite an unrealised loss of RM21.7mil recorded in 3Q25, primarily arising from the reversal of an unrealised fair value gain of RM27mil for Sunway University and College Campus following its disposal on Sept 30, 2025.

“The loss was partially offset by a fair value gain of RM5.3mil recognised for Aeon Mall Seri Manjung, which was acquired on July 25, 2025,” it added.

The services segment will cease to contribute revenue from 4Q25 following the disposal of Sunway University and College Campus, during which Sunway-REIT recognised a realised gain of RM21mil.

Its retail segment, which accounted for over 70% of earnings, continued to drive growth, with revenue rising 28% to RM167.2mil from RM130.6mil in 3Q24, boosted by new asset contributions, mall reopenings, and stronger performance at existing properties.

Revenue from the hotel segment increased 20% to RM35mil from RM29.2mil a year earlier, driven by higher occupancy rates and demand for MICE activities, while the industrial and others segment saw revenue nearly double to RM4.4mil from RM2.3mil in 3Q24.

For the nine months ended Sept 30, 2025 (9M25), Sunway-REIT’s revenue increased 22% to RM666.69mil from RM546.3mil in the same period last year, while net profit rose 12.5% to RM361.36mil from RM321.19mil.